FMCG Journey --- Peshwa Acharya

 My journey – I shall talk about my journey and this had a lot lessons for me, sure you too will gain

1. 10-12 years were FMCG – my learnings – P&G, Reckitt, Balsara
   • Some best practices of customer interactions come from FMCG
   • Sales distribution (Fulfilment) and marketing (generating)
   • In life common sense is not common, simple things are not made to be simple
   • Difference between brand and commodity, happens due to marketing
   • The importance of brand emerges there
   • Brand managers are considered important, they are groomed as BRAND CEOs
   • All P&G brands are built
     • Dettol brand manager is like a CEO of Dettol
     • So are for every brand at P&G – Everything for the brand he is responsible
   • Holi grail of marketing
     • Structured Process, defined and followed
     • Packaging and PR comes next
     • Writing creative brief
     • “If you are not able to put a process in one page, you cannot exist”
     • Ability to convert thoughts into one sheet of paper is very important and key to execution
   • Writing an inverted memo
     • In schools, we write composition, starting with introduction, explanation….
     • In P&G conclusion will always on the top
       • Say, The budget has to be on the top….
       • Why you need it, will follow…

• SALES – in FMCG
  • How many started with Sales
    • HDFC Bank – Morning huddle every day (Navneet Anand)
      • Numbers chasing
      • Who are the ones we are chasing
      • Where are we in each case
      • Do you chase the end-customers of intermediaries?
        • Chase the targeted market – product centric? Geography?
  • FMCG retail sales at P&G used to happen as follows
    • Cover 50 outlets every day in a market (Beat of 30-50) outlets
    • Have the (PJP) permanent journey plan
    • Define every day – PJP – everyday plan – 5 W 1 H defined for every day
    • So, you have structured approach to sales
      • My son is FMCG does same in Pune
      • Same thing he is doing after 30 years…what I did then… the process are so sound

• Balsara was taken over by Dabar

The brands include….

1. Babool and promise, Meswak
   • Odonil, Odopic, Sanifresh
   • Portfolio planning is very important
     • We had a 40-50 crore of marketing budget
     • Typically this was divided equally among all the brands
   • I changed it
     • Focused on Babool, then odonil and odomus
     • Babool moved from 2% to 8% of the market share
     • Sometimes you have to focus on one brand and pump money to gain larger share
   • In those days we spent a lot on advertising on TV
     • TV viewing goes to all neighboring countries
     • Why don’t we sell the products in SAARC countries
     • Recruited a sales head for SAARC
       • Bangladesh, Myanmar, Srilanka, Maldives, Nepal
       • Pakistan sold through Dubai
     • From these countries, we got 20-30Cr from very quickly, of the 200 cr turnover; almost 10-15% of the topline

• Question by SUNIL: Any strategic Alliances to increase the distribution…?
  • National sales head is responsible for India
    • Why do not we capture new Geography was the thought
    • Two of us travelled to set up distribution network
      • At one or two places, we need to tie up for manufacturing (Bangladesh)
      • In Sri Lanka, we did strategic tie-up with biggest distributor
      • Eg. R J Corp in Delhi – Pepsi bottler becomes a big brand from being a distributor in their earliest avatar (Study about them)
    • Strategic happened when Dabur acquired Balsara
      • I was reporting to the CEO, 12 years my senior from IIMC
      • I was the COO, I became point man for integration
    • We integrated with having the best interests of the both integrating companies companies
      • • I was junior
        • I had two offers from both, Dabur (Delhi) and Balsara (Mumbai)
        • I took Mumbai job…
    • Brands might get sold, but essence of brand remain same

• In FMCG, brand must be occupying the mind space and not shelf space (SUNIL questioned)
  • According to me 2-3 things we need to do, for any brand
    • What the insight is – good quality comes from insight
    • Must be consistent to address the needs
      • Babool was poor mans Colgate (1+1)
      • They did not have reasons for buying
        • People want to feel fresh, that becomes the key
        • The communication got created around it
        • Prasoon Joshi did it
        • Insight – Toothpaste means morning freshness
  • A lot of products get built on packaging
  • Dettol – Anticeptic 100% bath was the value proposition that catapulted the brand
    • Now it has become fragmented due to too many variants emerging
  • Daughter brand became bigger than mother brand
    • Mother is 200cr, the Dettol antiseptic liquid
    • Daughter, Dettol soap is now 3000Cr
    • Reckitt became successful because of Dettol soap
    • Savlon has not become that big…

• Question by Anita: Speed of execution is the key
  • FMCG or Telecom, mindset changes quickly
  • During the COVID we need to be quicker to claim the market…
  • ANSWER
    • IN FMCG marketing speed can be 1 month
    • IN Telecom it was need to be done in one week
    • In a few industries the turnaround needs a few hours
      • PAYTM came up with an ad having the PM pic, within hours of Demonetization
    • Quickly we need to respond to the shifts and changes
    • As things are going, we need to do quickly

1. From a product to another product, mindset changes quickly
   • We need to give information quickly
     • Wife needing to buy a Washing Machine
       • Asked her to do research
         • Washer and Drier
         • Front loading
       • Samsung and Voltas Beko shortlisted
         1. Sent messages to the CMO of both companies
         1. Whoever responded quickly, I will buy, I thought
         1. Voltas responded first and went for it..
   • FIFTH P of marketing is PACE
     • Lot of companies changing
     • TATA Harrier (I bought for power)
       • Took various test drives of various makes
       • In the process, they do not have process of whatsapp etc for prompt exchange messages and responses , they use landline…
       • The large companies do not have it….are archaic
       • They want everything NON-VOICE…they do not want to talk…

• TELECOM (Orange-hutch-Vodafone; Reliance Communication)
  • Biggest learning in Telecom (Hutch)
    • Strategic planning cycle moved to six days from six months of FMCG
      • Hutch bought over eastern India circle..
        • Integration to be done
        • In telecom planning construct was just seven days
      • Every circle has 2-3 players
        • How to decide on tariff
        • How to launch – speed of execution critical
    • How to do packaging
      • Pre-paid product helped to increase tele-density
      • Banking people has not been able to do
      • Hopefully the fintech will convert banking into such a space
    • Telecom thus became FMCG like
  • At Reliance
    • Worked with both brothers, Anil and Mukesh,
  • Question: ANY change that you made in people’s mind in Telecom
    • Answer
      • We understood that people buy telecom network because of quality of network
        • The Hutchinson Pug campaign…where ever you go we are with you…came from that insight
      • In reliance communication          
        • One decision I took was
          • 2011 – Advertising point of view
          • Communication perspective
            • Brand ambassador – Hrithik Roshan
            • He was being paid 15Cr for 1 year endorsement
          • I wanted to get one
            • Anushka and Ranveer – Band, Baaja baraat released
            • Both came for 1.5Cr
            • Interview with Ranveer went bad…he wanted to sign on every advertising campaign brief.
            • We got Rann Vijay…paid 20 lakhs…got both in 95 lakhs
            • It became a big success..
            • At the time, for one movie wonder – Anushka..
          • You must take the call with belief that it will work
          • It is like a stock…

• Reliance mobile was stagnant    
  • Was considered poor man’s brand
    • Used by economically marginal families
    • Anushka brought younger crowd, it rubbed on the brand

NEXT PHASE

• First employee of Reliance Retail
  • Started by building Reliance Digital
  • Modern retail was built
  • Reliance did not have any idea of consumer business, as they were in B2B, Petro-centric
  • First thing was to get B2C mindset
  • We need to add SME – Subject Matter Experts – to be added from various companies
  • I was doing the role of knowledge transfer – from westerners recruited from Walmart, …
  • It was very hard times, doing 72-80 hours in a week work
  • Unlike Reliance, DMART built everything bottoms up

• BASICS
  • PER cycle
    • Planning
    • Execution
    • Review
  • In Indian companies, very little time is invested on Planning and Review, more on execution
    • One of the most important thing, invest time most on planning
    • As CMO 1500 stores across 10-12 formats
    • All non-lifestyle formats I was handling
    • Complexity was very high
    • Supply-chain teams, Store-managers were to be facilitated
    • Uniformity and standardization important
    • Promotions were standardized
    • Pricing for same product across the geographies was different due to procurement; but process were standardized
  • Planning is important
    • Event related sales very important – Raksha Bandhan, Dusshera, Deepawali..
    • Months ahead of the event all negotiations happen with likes of Cadbury, Frooti.
  • We will have only a few black-swan events

2015 – Fairfax, Thomas Cook, sterling Holidays

• Sterling – Overhaul of the offerings
  • I changed the model into time-share and hotel mode
    • 45% resorts – 55% hotels : Business model change
    • Diversification of portfolio
    • During COVID time share paid off, as people were fed up of being at home and came to work from these properties
  • Previously our resorts were green field, we moved to asset-light
  • Sterling was positioned as experiential holidays
    • For Discoveries and Experiences, Come to Sterling Holidays
  • In a services marketing, it is about the last mile service, not just marketing..
  • Travelled to all the Resorts and hotels, where everyone knows me
    • Chefs must create great quality dishes…
• You must give a lot of attention to people – services part
• ALWAYS RELAUNCH THE PRODUCT TO THE CUSTOMERS WITHIN – BRAND BOOKLET
  • Every person must know everything about the brand
  • A lot of training – it has a very big role to play in

• 2020 to now…
  • I have been in education space …
  • COO and CBO –
    • Vibgyor schools
      • Funnel -à Leads à appointments à enrolment
      • PreCovid – 100 leads
        • 40 from digital
        • 60 non-digital
      • We moved to 80-20 now
      • Changing money allocation to make it happen – April 2000
      • What is your cost per lead? Need to know
        • Cost per lead
        • Cost per acquisition 8%
        • RPU for product?
        • FOR MBA product –?
          • COST per acquisition…
          • Marketing acquisition cost, is it 8-10%
      • Cost per lead for school – Industry analysis
        • Cost per lead is 500-600 Rs for school
        • I wanted it to happen at 300
        • Simple – Cost of acquisition is important, as much as Cost of Lead
        • We tracked it every week…
        • We spent on those that gave most return
      • Any tips and tricks that you use to get
        • Product is closest to real CAT
        • Use google and facebook,
        • On facebook
          • Geo-targeting
          • Most specific “Best CAT”
          • Document it to transfer to all
      • My learning SPECIFIC
        • Adwords – Vibgyor –
          • Found that “Best K12 school in Airoli”, “Best K12 school in Goregoan”, such keywords gave better results…
        • Lot of searches happen after office hours…
          • So on Google we changed “School open till 12pm, even though school closes at 5”
        • Searching of where the school is….
          • Name the road as Vibgyor road
            • Aeroli Vibgyor road on google
• Social media and search important
• Friends everything will change every year. Change is constant
• Google reviews –
  • Individual school team has to get 100 google reviews every month
  • Get the parents to put the review..
  • School is very engaged product….
  • The Google Reviews help the brand percolation

1. Check on YOUTUBE vibgyor channel…
   • 45 videos were made for every process…
     • Bus systems better
     • Security
     • Canteen system
     • Portability of the child (all 45 schools, same curriculum same day)
     • Between Pune and Bangalore – seamless transfer…
     • The chairman and vice-chairman
   • Make the sales standardized
     • Feature – A – B – C – D…

POST COVID scenario

• Growthshyft.com that I am now involved with
  •  Personalize mentoring – with battery of industrial gurus, many from My institutional and Work world fraternity
• 3 things
  • Your communication skills must be very good
  • Power of Videos – Videos impact hugely
  • Using all types of technologies
  • Process – Send me on Whatsapp, before we talk so that I do the homework

• It puts a little bit of burden on management
  • TRUST needs to be high
  • Reason for using the brand has to be compelling

I am with BRIGHTCOM now….

• Fastest growing digital advertising company
• On Board of a few NGOs
  • MagicBus – education and life-skills

Three most important things for the nation to work upon, looking forward….One of my friends in politics is working in Delhi! 

• Building HEALTH INFRA
  • Building EDUCATION INFRA
    • POPULATIION CONTROL

……………………………..

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